Having bad credit doesn’t mean you can’t get a credit card — but it does mean you need to choose carefully. We compared 8 cards available to applicants with credit scores under 580, looking at approval odds, annual fees, deposit requirements, rewards, and upgrade paths. Secured cards are the best route for most people: lower fees, refundable deposits, and a clear path to better cards within 12-18 months.
Best Cards for Bad Credit at a Glance
Card
Type
Annual Fee
Min. Score
Deposit
Rewards
Best For
Discover it Secured
Secured
$0
500+
$200+
2% gas/restaurants, 1% all
Best overall (rewards + no fee)
Capital One Platinum Secured
Secured
$0
500+
$49-$200
None
Lowest deposit possible
OpenSky Secured Visa
Secured
$35
No check
$200+
None
No credit check needed
Chime Credit Builder
Secured
$0
No check
Varies
None
No hard inquiry
Capital One Quicksilver Secured
Secured
$0
500+
$200
1.5% everything
Best secured rewards
Credit One Visa
Unsecured
$75-$99
550+
None
1% select categories
No deposit available
Petal 2 Visa
Unsecured
$0
580+
None
1-1.5% cash back
Best unsecured for fair credit
Self Credit Builder
Credit-builder
$0
No check
Loan payments
None
Build credit + savings simultaneously
Individual Card Reviews
Discover it Secured — Best Overall
Feature
Details
Annual fee
$0
Deposit
$200 minimum
APR
28.24% variable
Rewards
2% at gas stations and restaurants (up to $1,000/quarter), 1% everything else
First-year bonus
Discover matches ALL cash back earned in year 1
Credit bureaus reported
All 3 (Experian, TransUnion, Equifax)
Upgrade path
Auto-reviewed at 7 months for unsecured upgrade
Free FICO score
Yes, monthly on statements and app
Approval odds
Very High (500+ score)
The Discover it Secured is the best overall credit card for bad credit. It’s the only secured card with meaningful rewards (2% at gas and restaurants), charges $0 annual fee, and Discover matches all your cash back in year 1 — effectively doubling your rewards. After 7 months of responsible use, Discover automatically reviews your account for an upgrade to an unsecured card with your deposit refunded. The free FICO score on every statement helps you track your progress.
Best for: Anyone with a 500+ score who can put down $200.
Capital One Platinum Secured — Lowest Deposit
Feature
Details
Annual fee
$0
Deposit
As low as $49 (determined at approval)
APR
29.99% variable
Rewards
None
Credit bureaus reported
All 3
Upgrade path
Auto-reviewed for unsecured upgrade
Approval odds
Very High
Capital One’s Platinum Secured stands out because the deposit can be as low as $49 for a $200 credit limit — determined during the application based on your creditworthiness. Most secured cards require a $200 minimum deposit, so this is the best option if $200 is a stretch. No rewards, but the $0 annual fee and low deposit barrier make it the most accessible secured card available.
Best for: People who can’t afford a $200 deposit.
OpenSky Secured Visa — No Credit Check
Feature
Details
Annual fee
$35
Deposit
$200-$3,000
APR
25.64% variable
Rewards
None
Credit check
None (no hard inquiry)
Credit bureaus reported
All 3
Approval odds
Near-guaranteed
OpenSky does not check your credit at all — no hard inquiry, no minimum score. This makes it the only real option for people who have been denied even other secured cards (very rare, but it happens). The $35 annual fee is the trade-off. If you can qualify for the Discover it Secured or Capital One Platinum Secured, those are better cards. OpenSky is the backup plan.
Best for: People denied by other secured cards, or those wanting to avoid a hard inquiry.
Approval Odds by Credit Score
Your Score
Discover it Secured
Capital One Platinum Secured
OpenSky Secured
Credit One Visa
Petal 2
Under 500
Unlikely
Possible
Yes
No
No
500-549
Yes
Yes
Yes
Possible
No
550-579
Yes
Yes
Yes
Yes
Unlikely
580-619
Yes
Yes
Yes
Yes
Yes
620-669
Yes
Yes
Yes
Yes
Yes
“Yes” = high likelihood of approval. “Possible” = case by case. Approval is never guaranteed.
Secured vs. Unsecured Cards for Bad Credit
Feature
Secured Card
Unsecured (Bad Credit) Card
Deposit required
Yes ($200-$2,500)
No
Annual fee
$0-$35
$75-$99+
APR
22-28%
28-36%
Credit limit
Equal to deposit
$300-$1,000
Upgrade path
Often auto-upgrades in 12-18 months
May upgrade after 12+ months
Rewards
Some offer 1-2% cash back
Rare
Approval odds
Very high (near guaranteed)
Moderate
Total first-year cost
$0-$35 (deposit is refundable)
$75-$99 (fees are not refundable)
Secured cards are almost always the better choice—lower fees, better terms, and your deposit is refundable.
What to Look for in a Bad Credit Card
Green Flags
Feature
Why It Matters
Reports to all 3 bureaus
Your on-time payments build credit everywhere
No annual fee (or low fee)
Saves money while rebuilding
Upgrade path to unsecured
Get your deposit back eventually
Low deposit requirement
$200 minimum is standard
Mobile app for monitoring
Track payments and utilization easily
Red Flags to Avoid
Feature
Why It’s Bad
Annual fee over $50
Eats into a small credit limit
Monthly maintenance fees
Extra cost on top of annual fee
Processing or application fees
One-time fees just to open the card
No upgrade path
Stuck with a secured card forever
Reports to only 1 bureau
Slows your credit-building progress
Very high APR (35%+)
Dangerous if you carry a balance
How to Rebuild Credit Fast
Month-by-Month Timeline
Month
Action
Expected Score Impact
1
Open secured card, set up autopay
Score may dip slightly (new account)
2-3
Use card for small purchases, pay in full
Positive payment history begins
4-6
Keep utilization under 10% of limit
Score starts climbing (+20-40 points)
7-9
Continue perfect payments
Score continues rising
10-12
Request credit limit increase or second card
More available credit, lower utilization
13-18
Request upgrade to unsecured card
Deposit refunded, score solidifying
The Optimal Usage Strategy
Rule
What to Do
Why
Use for 1-2 small purchases per month
$20-$50 in charges
Shows active, responsible use
Pay in full before statement closes
$0 balance reported
Keeps utilization at 0-1%
Or pay after statement, before due date
Low balance reported
Shows some utilization (1-9% is ideal)
Never exceed 30% of limit
On a $300 limit, keep under $90
Utilization above 30% hurts your score
Set up autopay for minimum payment
Safety net
Never miss a payment even if you forget
Credit Score Recovery Timeline
How Long It Takes to Reach “Good” Credit (670+)
Starting Point
Typical Timeline
Key Actions
No credit history
6-12 months
Secured card + on-time payments
Score 500-579 (poor)
12-18 months
Secured card, dispute errors, lower utilization
Score 580-669 (fair)
6-12 months
On-time payments, lower utilization
After bankruptcy
2-4 years
Secured card immediately after discharge
After foreclosure
2-3 years
Secured card + rebuilding other accounts
After collections
1-2 years
Pay/settle collections, build new positive history
Authorized User Strategy
Adding yourself as an authorized user on someone else’s account is the fastest way to boost a thin credit file:
Factor
Details
How it works
Someone with good credit adds you to their card
What gets reported
Their account history appears on your report
Score impact
Can add +30-50 points if the account has long positive history
Your risk
None—you don’t have to use the card
Their risk
They’re responsible for any charges you make
Best candidate
Parent, spouse, or trusted family member with old, low-utilization card
Ideal Authorized User Account
Feature
Why It Helps
5+ years old
Increases your average account age
Low utilization (under 10%)
Lowers your overall utilization
Perfect payment history
Adds to your positive payment record
High credit limit
Improves your total available credit
Costs Comparison: First Year
Card Type
Deposit
Annual Fee
Monthly Fees
Total First-Year Cost
Deposit Refunded?
Good secured card
$200
$0
$0
$0 (deposit held)
Yes, after upgrade
Average secured card
$200
$35
$0
$35
Yes
Bad unsecured card
$0
$99
$10
$219
N/A
Credit-builder loan
$0
$0
$0
$0 (interest on loan)
N/A
Credit Builder Loans: An Alternative to Secured Cards
If you want to build credit without carrying a credit card balance, a credit builder loan works differently: you make fixed monthly payments toward a loan amount that’s held in a savings account and released to you when the loan is paid off. Many credit unions and online lenders like Self and Credit Strong offer these for $25-$50/month.
Unlike a secured card, a credit builder loan shows both “revolving” (if you also have the card) and “installment” credit on your report — a healthy credit mix that can add 3-5 points to your score. Most people see a 40-60 point improvement within 12 months of using a secured card and credit builder loan together.
When to Move Beyond a Bad-Credit Card
Signal
What to Do
Score reaches 670+
Apply for a mid-tier rewards card
Score reaches 700+
Apply for better cash back or travel cards
12+ months of perfect payments
Request upgrade from secured to unsecured
Secured deposit refunded
Consider a card with no annual fee and better rewards
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy
